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J&J talc re-filing settlement cost slightly better than Wells’ expectation

Wells Fargo analyst Larry Biegelsen notes Johnson & Johnson announced that it re-filed for chapter 11 bankruptcy to settle for $8.9B about 60K talc claims, which is slightly better than the firm’s expectation of a $10B settlement. However, Wells notes that its legal expert sees the odds this goes through at 50/50. The firm has an Overweight rating on the shares with a price target of $195.

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